Commodities

Pepper recovers marginally on buying interest

G. K. Nair Kochi | Updated on June 09, 2011 Published on June 09, 2011

pepper





Pepper futures moved up marginally on bullish sentiments and some buying support.

There was some liquidation, switching over and additional purchases. “Ulata badla” appears to have taken place. Buyers might have liquidated June and bought July and August.

Good quantity of loose pepper was traded in the plains of Kerala at Rs 270-275 a kg. Exporters, as well as processors and investors, bought it for processing and depositing in the warehouses.

Thus, the exchange warehouses are reportedly full, as the 3,300 tonnes delivered have not yet been moved out, trade sources claimed.

Meanwhile, those are holding long positions and had taken delivery wanted to buy bulk density good quality high range pepper at Rs 279-280 a kg, but the sellers quoting higher prices stayed away, market sources told Business Line.

June contract on the NCDEX moved up by Rs 6 to close at Rs 29,489 a quintal. July and August went up by Rs 84 and Rs 37, respectively, to close at Rs 29,290 and Rs 29,301 a quintal.

Total turn over

Total turn over increased by 1,206 tonnes to 4,465 tonnes. Total open interest rose by 102 tonnes to 12,612 tonnes showing additional purchases.

June open interest fell by 310 tonnes, while that of July and August moved up by 361 tonnes and 38 tonnes, respectively, to close at 2,969 tonnes and 931 tonnes.

Spot prices on limited activities remained unchanged at the previous levels of Rs 27,300 (ungarbled) and Rs 28,100 (MG 1) a quintal.

Indian parity in the international market was at $6,800 a tonne (c&f) and continued to remain out priced.

But, all other origins reportedly showed an upward trend cued by the Indian futures market, they said. Vietnam quoted $5,400 a tonne (fob) for FAQ 500 GL.

Published on June 09, 2011
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